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PRESS RELEASE
22% IRR project exit, 15% annual dividend, “clear examples of Adamas strengths”
8th October 2014: An investment fund into which AIM-quoted Adamas Finance Asia (ADAM) last
September invested US$1 million has exited from a credit-finance project with a gross IRR of 22%.
ADAM has also received a second semi-annual dividend distribution in the amount of US$75,301.98
from its investment in GCCF. That follows an initial dividend payment also of US$75,301.98 received
from the fund in March 2014, and means ADAM’s investment in GCCF has to date yielded an annual
dividend return of 15.06%, well ahead of the 8% annual dividend targeted by the Fund.
Following GCCF’s exit from the Project Wealth, ADAM’s principal US$1 million investment will
remain in the fund to be re-invested into another credit-finance project in the near future.
GCCF was launched in August 2013 by Hong Kong-based Adamas Asset Management (HK) Limited
("Adamas"), which since February 2014 has been has been acting as ADAM's investment manager.
ADAM Chairman John Croft said: “This new high-yield exit from Project Wealth, together with the
first-year dividend of more than 15% from our investment in GCCF, provides a clear example of the
potential of providing credit finance in China. Adamas’ on–the-ground understanding and experience
bring a solid underpinning to our strategic repositioning as a provider of credit-finance."
In line with a reshaped investment strategy following a reverse takeover last February, ADAM has
announced it plans an orderly long-term disposal of its private equity asset portfolio to provide cash
reserves for redeployment into income-generating investments.
Adamas, which has teams in Shanghai as well as Hong Kong, has established a strong record of
investment successes arranging credit finance for well-managed Chinese SMEs, achieving gross
internal rates of return (IRR) from individual projects as high as 57.04%. The Adamas approach is
founded on rigorous due diligence, tight management involvement, and an insistence on robust
collateral.
The collateral backing the newly-exited project was 10% of a magnetite-sand mine located in the
Philippines with a whole-mine valuation of US$500 million, further underpinned by 39.23% of the
shares of the borrower.
Full Stock Exchange Announcement follows:
For further information contact:
John Croft, Adamas Finance Asia Limited:
Tim Feather, WH Ireland Limited:
Allan Piper, First City Public Relations (Hong Kong):
Simon Hudson, Tavistock Communications (London):
+44 (0) 7785 315 588
+44 (0) 113 394 6600
+852 2854 2666
+44 (0) 20 7920 3170
www.adamasfinance.com
Ticker symbol: ADAM
Issued by First City (China) Ltd
Adamas Finance Asia Limited
("ADAM" or the "Company")
Greater China Credit Fund
ADAM is pleased to announce that the Greater China Credit Fund (the “Fund” or “GCCF”), an
investment fund into which the Company invested US$1 million in September 2013, has achieved a
gross IRR of 22% from a newly-exited credit finance project, Project Wealth. ADAM has also recently
received a second semi-annual dividend distribution in the amount of US$75,300 from its
investment in GCCF. This follows an initial dividend payment, also of US$75,300, received from the
Fund in March 2014, and means ADAM’s investment in GCCF has to date yielded an annual dividend
return of 15.06%, well ahead of the 8% annual dividend targeted by the Fund.
GCCF was launched in August 2013 by Hong Kong-based Adamas Asset Management (HK) Limited
("Adamas"), which since February 2014 has been has been acting as ADAM's investment manager.
ADAM Chairman John Croft said: “This new high-yield exit from Project Wealth, together with the
first-year dividend of more than 15% from our investment in GCCF, provides a clear example of the
potential of providing credit finance in China. Adamas’ on–the-ground understanding and
experience bring a solid underpinning to our strategic repositioning as a provider of credit-finance."
With the newly-exited Project Wealth, GCCF provided bridging finance for a Hong Kong-listed
resources company. The borrower has now repaid in full both the principal and interest on the
HK$80 million (approx. US$10.2 million) secured loan. The collateral backing Project Wealth was 10%
of a magnetite-sand mine located in the Philippines with a whole-mine valuation of US$500 million,
further underpinned by 39.23% of the outstanding shares of the listed company.
Enquiries:
Adamas Finance Asia Limited
John Croft
+44 (0) 1825 830587
Nominated Adviser and Joint Broker
W H Ireland Limited
Tim Feather
+44 (0) 113 394 6611
Joint Broker
NSBO
Laurie Pinto
+44 (0) 207 024 4600
Public Relations Advisers
First City Public Relations (Hong Kong)
Allan Piper
+852 2854 2666-------
Tavistock Communications (London)
Simon Hudson
+44 (0) 20 7920 3170